Over 17,200 new companies set up in India in April-June 2021
In 2020-21, as many as 14,674 companies were closed down, while the number stood at 70,972 in 2019-20.
More than 17,200 new companies have been set up in the country from April 2021 to June 2021. According to an official data, around 13.7 lakh companies were functioning at the end of June. The addition of new companies and closure is a routine affair depending upon the objectives of incorporating the company on a case-to-case basis, the minister of state for corporate affairs Rao Inderjit Singh told Lok Sabha.
There was an increase of 17,223 new companies compared to the year-ago period.
According to a written statement by Singh, the number of new companies incorporated in the country under the provisions of the Companies Act, 2013 from April 2021 to June 2021 is 36,191 as compared to 18,968 new companies in the corresponding period of last year.
The minister has given this statement based on the query on whether the second wave of coronavirus pandemic adversely impacted the economic conditions of the companies in the country.
The ministry has also taken various steps, including allowing firms to conduct their annual general meetings through video conferencing or other audio-visual means, the statement added.
“Appointment of independent directors is a continuous process. As the posts of the independent directors fall vacant the respective companies are required to comply with the provisions of Companies Act, 2013,” Singh said.
As per data with the ministry, there were a total of 21,87,026 registered companies till June 30 this year.
Out of them, 13,76,366 companies were active, and the remaining 8,10,660 were not active due to various reasons like liquidated/ dissolved, amalgamated/ merged with other companies, struck-off, and converted to Limited Liability Partnership (LLP).
Over 14,674 companies were closed down in 2020-21, this number was around 70,972 in 2019-20. A total of 1,43,223 companies were shut in 2018-19.
Under Regulation 17(1B) of Sebi (Listing Obligations and Disclosure Requirements), Regulations, 2015, the top 500 listed entities by market capitalisation are required to comply with the requirement of separation of the roles of the chairperson of the board and MD/ CEO with effect from April 1, 2022.